Standard & Poor's credit rating agency upgraded Greece's sovereign credit rating to BBB from BBB- on Friday, with a stable outlook from a positive one.

S&P had first restored Greece's credit standing as investment grade in October 2023, and revised the country's outlook to positive in April 2024. It is now the third of five credit agencies recognized by the European Central Bank after Scope and DBRS to upgrade Greece within the investment grade class.

The credit rating agency noted it was upgrading Greece due to its "unwavering fiscal discipline" and said that the efforts to improve tax compliance, combined with its resilient economic drowth will allow Greece to continue overperforming its fiscal targets.

Reactions

Deputy Premier and former Finance Minister Kostis Hatzidakis welcomed the upgrade, saying, "For me, personally, it is particularly important that S&P underlined the fiscal prudence that defines the government's policy, as well as the recognition of the systematic effort in recent years to limit tax evasion."

The further upgrade of the Greek economy within investment grade by S&P, particularly at a time of global turbulence and uncertainty "is yet another proof of the international investment community's confidence in the government's economic policy," he added. 

National Economy & Finance Minister Kyriakos Pierrakakis noted that "Greece is dynamically returning to action, claiming one more step in investment grade." The credit rating agency's forecast for the Greek economy "justifies the government's choices and the trust of citizens, who embraced our belief that fiscal stability provides the only safe way out from the multiyear economic crisis." 

Alternate FinMin Nikos Papathanasis noted that the international recognition of the measurable return of the economic policy will accelerate the reforms that society calls for and Greece needs, to bring more investments and job openings.